Multi-level marketing (MLM), also known as Network Marketing, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling. Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations). Independent distributors develop their organizations by either building an active customer base, who buy direct from the parent company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the parent company at wholesale price. Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person's sales.

Legitimacy It is sometimes difficult to distinguish legal and reputable MLMs from illegal pyramid or Ponzi schemes. MLM businesses operate in the United States in all 50 states and in more than 100 other countries, and new businesses may use terms like "affiliate marketing" or "home-based business franchising". However, many pyramid schemes try to present themselves as...

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...﻿LEVEL OF PREFERENCE OF CATERING SERVICE SECTOR IN MONKAYO, COMPOSTELLA VALLEY PROVINCE TO MULTI-LEVELMARKETING
CHAPTER I
PROBLEM AND ITS SETTING
BACKGROUND OF THE STUDY
In today’s modern world customers are the main reason of establishing different types of businesses to sustain their needs and wants. Business provides products and services to customers. This products and services in the present day world are provided by the entrepreneurs who organize, manage and assume the risk of starting businesses mainly for earning profit. Engaging in different types of business is easy but crucial because of the diverse taste and preferences of the customers. This is the reason why different business sectors implemented strategies to satisfy the needs and wants of each buyer of their products offering presented in the market.
As defined by ISO: "TQM is a management approach of an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." TQM nowadays is the mainstream of every business, since different companies using this method to become successful one. TQM was originated from “TOTAL PRODUCTIVE MAINTENANCE” (TPM) which was invented by Toyota Company. They solve their problems by completely changing their way as it operated its plants, they stopped their...

...MULTILEVEL MARKETING
1. Actions taken by governments
1.1 The Unites States of America
The U.S Federal Trade Commission warns "Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products." and states that research is your best tool, giving eight steps to follow:
1. Find — and study — the company’s track record
2. Learn about the product
3. Ask questions
4. Understand any restrictions
5. Talk to other distributors (beware of shills)
6. Consider using a friend or adviser as a neutral sounding board or for a gut check
7. Take your time
8. Think about whether this plan suits your talents and goals
1.2 Vietnam
In Vietnam, MLM has been recognized as a legal form of business since the adoption of The Law on Competition in 2004. However, illegal MLM is prohibited. According to Article 48, Law on Competition, which addresses the illegal multi-level selling of goods:
Enterprises shall be prohibited from conducting the following acts aimed at obtaining illegal profit from recruitment of new participants to a multi-level sales network:
1. Requiring persons who wish to participate to pay a deposit, to purchase an initial fixed...

...they buy it? |
Object marketing plays that hand and trumps it. It attaches words and text to the object that helps it make the selling proposition
Marketing Operations professionals are increasingly expected to develop and optimize marketing-related processes such as the budgeting and planning process; the lead management process; the process for integrating newly acquired companies; and the process for creating, reviewing, and distributing amarketing asset. As a result of this push to improve performance by developing and optimizing process,
Market object is any business element that enables or helps to enable an overall business objective. An example of a market object is an e-commerce web site. A market object can also be a smaller object within the larger parent - for instance, your shipping rules can be a market object within the larger market object, e-commerce web site.
Market objects are usually referred to by companies that are experts in both marketing and technology. This is a new breed of consultancy which attempts to take full advantage of the newer marketing technologies and deploy them for their clients.
Marketing Organisation: a marketing structure of an organisation in which staff specialists have responsibility for particular markets (rather than for particular products of the organisation)
Marketing Operations...

...perhaps the most fertile ground for the Amway Corporation. In short it has made substantial value addition to India’s social economic life.
The focus of this project is based on studying a single organization i.e The Amway Corporation. This research has been conducted to study the marketing strategy adopted by Amway in the Indian market. An attempt has been made to study the company’s perspective in the new market and analyse on how the company plans its expansion in India.
I have substantiated my research by conducting interviews to gain more insight about the corporation. The data has been analysed on the basis of 2 surveys which were conducted by me.
Survey 1 was conducted through direct, phone and online interviews.
Survey 2 is conducted by gathering information through structured questionnaire and the interpretation for the same has been provided.
I have finally concluded my research by providing a summarized conclusion and also suggested recommendations on the basis of the marketing mix.
Contents
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
Chapter 1: Introduction 1
Chapter 2: Amway Profile 5
How it works?
Product Profile
Current Scenario
Chapter 3: Amway’s marketing strategies 25
Sales & Marketing Plan
Strategies in the market
Penetration
Segmentation
Chapter 4: Research Methods 37
Objectives
Methodology
Data Collection
Sample Size
Research Design
Chapter 5: Findings & Analysis 45
Chapter 6: Conclusion &...

...Multilevel Marketing: A Legitimate Business Opportunity
Caleb Bowers
Belhaven University
BSM 392 – Business Research Methods
Professor: Dr. Parker
April 18, 2013
Abstract
The following article has been written to provide information and further scholarship in which supports the hypothesis that a direct sales job with a multilevel marketing company is a legitimate job opportunity and can provide a viable business model for starting and maintaining one’s own personal business. This article addresses some of the common misconceptions that are often associated with multilevel marketing companies. Lastly the article provides a method and a process in which to recognize and identify a legitimate opportunity from an illegal pyramid scheme.
Introduction
While it is considered to be a form of Direct Selling it is often referred to by many different names: multilevel marketing (MLM), network marketing (NM), and network marketing direct selling organization (NMDS). It is commonly misunderstood and regardless of what it is called multilevel marketing is often a disparaged form of direct selling which can be more simply defined as a form of retail distribution in which the selling of it’s products or services is done face-to-face or person-to-person away from a fixed retail location (Albaum 1989). One of the misconceptions and most common allegations is that multilevel...

...Multi-LevelMarketing: A Promise or Problem?
A study based on Bangladesh
Research Proposal on
Multi-LevelMarketing: A Promise or Problem?
A study based on Bangladesh
Submitted By:
Syed Ahsan Pervez 090306
Submitted To:
Md. Reaz Uddin
Assistant Professor
Khulna University
Business Administration Discipline
4th year, 2nd term
Course Title: tutorial of Business Research Methodology
Course no: BA-4202
May 30, 2013
Abstract
Multi-LevelMarketing or MLM is a marketing strategy in which the sales person is compensated for not only his/her own sales volume but also for the sales volume that made by sales person recruited by him/her. This strategy is highly cost effective as it uses personal relation and word of mouth as its main marketing communication method. Thus a lot of third world country is applying this strategy in the local market, though most of the developed country has banned this strategy from their country. Recently it was banned by the Bangladeshi government from Bangladesh. After the banning; most of the people of Bangladesh has developed a negative perception against multi-levelmarketing strategy. But as a third world country this strategy can be proved to be very much useful Bangladeshi economy and business sectors if applied correctly. So...

...﻿
Multi-levelmarketing
Abstract
Multilevel-marketing have grow quite strong,first origin in the America then now spread out to over 80 coutries worldwide.More and more people are participating in the multilevel-marketing company.The research aim to find out the reason what people think about the multilevel-marketing as such to the reasons of why people would want to join the company to answer to the question of the extreme expansion in Viet Nam of the multilevel-marketing company.In this research,a survey was used on to collect data from 50 IU students and analyze for the result.The anticipated reasons could be about the trend,the temptation,etc..The research will provide a new scope of vision about the multilevel-marketing and people can have a more clearly view about this matter.
Multi-levelmarketing or Network marketing began in the first half of the 20th century in America. Network marketing history connects closely with the great name of American Businessman, Carl Renborg (1887-1973), who has some ideas developed into network marketing afterwards with sales more than 200 billion dollars each year. Carl Renborg used to live and work in many companies in China for 20 years. At that time, Reborg started to think of the nitrution method and the...

...Avon has long been, and is today, the pillar that holds up the credibility of the direct selling industry. It has unintentionally lent legitimacy to multi-levelmarketing (MLM) schemes that sold outrageous health scams, some that were sued by financially ruined consumers and others that were shut down by regulators for pyramid fraud. By their association with Avon as “direct selling” companies, blatant scams are aided in persuading people that they are legitimate businesses. Anyone who has ever questioned the validity of anymulti-levelmarketing company has had to answer the defiant challenge: “Are you saying Avon is also fraudulent?” A stalwart of the Direct Selling Association, Avon is, de facto, multi-level marketing’s greatest ambassador.
But, in recent years, the tide may have reversed. Whereas Avon used to shower credibility upon MLM, now MLM may be corrupting Avon. Something very basic has shifted at Avon especially in the last 6 years, and that shift is now having major, negative consequences.
* Avon is increasingly called a pyramid scheme by Internet critics and some ex-salespeople.
* “Channel stuffing” – basing “sales” on increasing the number of salespeople who are induced to buy company products – appears to be an official strategy to offset declining consumer demand for the Avon brand and a recessionary economy.
* The drive to constantly add...